DEFENSE LOGISTICS AGENCY 

HEADQUARTERS 

8725 JOHN J. KINGMAN ROAD 

FORT BELVOIR, VIRGINIA 22060-6221 

May 29, 2014 

MEMORANDUM FOR SUPPLY AND SUPPLY DISCREPANCY REPORT (SDR) PROCESS 

REVIEW COMMITTEE (PRC) MEMBERS 

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 1095, 

Enhanced Guidance for Submitting Supply Discrepancy Reports (SDRs) for Item 

Unique Identification (IUID) Discrepancies 

The attached change to DLM 4000.25, Defense Logistics Management System, is approved. 

Discrepancy code narrative names are effective July 1, 2014. The target date for system edits to 

enforce appropriate discrepancy reporting is December 2015. Staggered implementation is 

authorized; Components may implement sooner to coincide with implementation of ADC 1030. 

SDR PRC members are required to actively monitor for implementation of this ADC and provide 

implementation dates when they become available. 

Addressees may direct questions to Ms. Ellen Hilert, DOD SDR System Administrator, 703-

767-0676 or DSN 427-0676, e-mail: ellen.hilert@dla.mil; others must contact their Component 

designated Supply PRC representative or SDR Subcommittee representative available at: 

www.dla.mil/j-6/dlmso/CertAccess/SvcPointsPOC/allpoc.asp (DOD common access card 

restricted). 

Attachment 

As stated 

cc: 

ODASD (SCI) 

IUID Working Group 

~~ Director 

Defense Logistics Management 

Standards Office 
Attachment to ADC 1095

Enhanced Guidance for Submitting Supply Discrepancy Reports 

(SDRs) for Item Unique Identification (IUID) Discrepancies

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

a. Technical POC: Ms. Ellen Hilert, DOD SDR System Administrator, 703-767-0676 or 

DSN 427-0676, e-mail: ellen.hilert@dla.mil

b. Functional POC: Ms. Ellen Hilert, DOD SDR System Administrator, 703-767-0676 

or DSN 427-0676, e-mail: ellen.hilert@dla.mil

2. FUNCTIONAL AREA:

a. Primary/Secondary Functional Area: Receipt Processing

b. Primary/Secondary Functional Process: SDR preparation for seriallymanaged/tracked materiel 

3. REFERENCES:

 a. DOD Instruction 4140.01, DOD Supply Chain Materiel Management Policy, December 

14, 2011

b. DODM 4140.01, DOD Supply Chain Materiel Management Procedures, February 10, 

2014

c. DLM 4000.25, DLMS, Volume 2, Supply

d. DOD Instruction 8320.04, Item Unique Identification (IUID) Standards for Tangible 

Personal Property (Draft)

e. ADC 1030, Implementation of DOD Item Unique Identification (IUID) Supply Policy

in DLMS Shipment Status and Associated Supply Discrepancy Report Procedures, dated 

February 21, 2013

4. APPROVED CHANGE(S): Significant revisions resulting from staffing are highlighted.

a. Overview of Change: This change provides amplifying guidance for the preparation of 

SDRs for discrepancies involving unique item data discrepancies for serially-managed/tracked

materiel. This specifically refers to missing or mismatched Unique Item Identifiers (UIIs) and/or 

serial numbers where required for item unique identification or tracking under a Unique Item 

Tracking (UIT) program. SDR discrepancy code definitions are modified to better conform to

the current guidance.

Attachment, ADC 1095

Page 1
b. Background: 

(1) IUID Policy. DOD policy is that the Components use the UII to enhance life-cycle 

management of assets and provide more accurate asset valuation, to achieve unqualified audit 

opinions on the Property, Plant and Equipment, and Operating Materiels and Supplies portions of 

DOD Financial Statements. The UII will serve as a common key in financial, property 

accountability, acquisition, supply, maintenance, and logistics systems. For an NSN to be 

managed under the DOD IUID Supply Policy, the item must have a unique item level traceability 

requirement at some point in its lifecycle. See DOD Instruction 8320.04 (Reference 3.d.) for 

specific criteria. Pending full implementation of IUID, tracking may be based upon the serial 

number alone. Items associated with a UIT program fall under DOD IUID Supply Policy. ADC 

1030 (Reference 3.e.) provides specific business rules for reporting discrepancies involving 

mismatched or missing UIIs and/or serial numbers. 

(2) IUID Indicator. The Federal Logistics Information System (FLIS) will be updated 

to support a new data field to identify the IUID Indicator. This new data element is a yes/no 

indicator to provide enterprise-wide visibility of IUID applicability for NSN items. Pending 

FLIS modernization, the IUID Indicator is available through web-services using the DLA 

Logistics Information Service Master Data Capability (MDC). 

(3) SDR Reporting. Upon review of the last 12 months of SDR data, the DOD SDR 

System Administrator found a high occurrence of misunderstanding regarding the desired use of 

U-series discrepancy codes. The U-series discrepancy codes, with the exception of U11

(materiel unidentifiable), are intended for discrepancies associated with the unique identification 

of materiel rather than generic materiel identification (i.e., the UII or serial number of a specific 

instance of the item is missing or mismatched to supporting documentation rather than a missing 

part number). The U-series discrepancy codes, with the exception of U11, are only authorized

for use when the item is managed or tracked by its UII or serial number. 

c. Requested change in detail:

(1) Revise DLMS SDR guidance to clarify appropriate reporting and improve 

visibility of SDRs associated with noncompliant shipments of serially-managed/tracked materiel.

(a) Revise narrative guidance to clearly state that the IUID discrepancies are 

applicable to the unique item identification. This includes shortage, overage, and wrong item 

discrepancies where the materiel involved requires IUID, as well as mismatched or missing UII 

or serial numbers where there is no quantity discrepancy. Missing and mismatched materiel 

identification of non-serially managed/tracked materiel, such as part number and NSN, must be 

reported under more appropriate discrepancy codes (e.g., packaging (labeling/marking), 

documentation, or technical data) without inclusion of a U-series discrepancy code. However, 

the U-series discrepancy codes are not to be used for missing UII(s) on the shipment status until 

IUID supply policy procedures have been implemented by the shipper.

(b) Reword the U-series discrepancy code definitions to highlight their

applicability to the unique item identifier or serial number discrepancies (removing the more 

generic reference to “data”).

Attachment, ADC 1095

Page 2
(2) Enhance management report selection criteria to include a user option to select all 

IUID-related discrepancies in a single query. This new category will include all U-series 

discrepancies minus the U11 (which is used to report unidentifiable materiel and is not 

specifically related to IUID).

(3) In conjunction with full IUID Supply Policy implementation, Component

receiving/discrepancy reporting systems must develop a systemic interface to identify the IUID 

Indicator. This will allow receiving and discrepancy reporting applications to facilitate correct 

procedures associated with serially managed/tracked materiel. This includes prompting the user 

for inclusion of the UII and/or serial number when a shortage, overage, or wrong item is 

discovered/reported and the IUID indicator is Y (yes). Conversely, IUID discrepancy codes (Useries codes minus Discrepancy Code U11) should not be employed for materiel that is not 

serially managed/tracked.

d. Revisions to DLM 4000.25 Manuals:

(1) Revise DLM 4000.25, Volume 2, Supply, Chapter 17, as shown in Enclosure 1.

(2) Revise DLM 4000.25, Appendix 3, Supply Discrepancy Report Relevant Data 

Elements, as shown in Enclosure 2.

e. Transaction flow: Standard SDR transaction flows apply.

f. Alternatives: None identified.

g. Proposed DLMS Change (PDC) 1095 Staffing Response/Comment Resolution:

Originator Response/Comment Disposition

1. DLA DLA concurs with the PDC. Sustainment has 

indicated a system change will be needed in our TQ 

process area.

Noted.

2. Air Force AF concurs with comments:

ILS-S does not need to do any coding changes if all 

they are doing is procedural updates on the use of 

the U-series discrepancy codes. Therefore

no coding required; however, if DLMSO were to 

change the criteria to restrict the U-series usage to 

IUID managed assets only, we would then need to 

change code to accomplish this.

Noted.

While this change does 

primarily focus on 

procedures, there are minor 

table updates for improved 

text names associated with 

IUID-related discrepancy 

codes, and there is intent for 

SDR applications to ensure 

proper procedures are 

followed by users.

3. Army Concur Noted.

4. Navy Concur Noted.

Attachment, ADC 1095

Page 3
Originator Response/Comment Disposition

5. Marine Corps Concur Noted.

6. USTRANSCOM Concur Noted.

5. REASON FOR CHANGE:

a. This change seeks to standardize use of SDR discrepancy codes for discrepancies 

involving serially-managed/tracked materiel resulting in mismatched/missing UIIs or serial 

numbers. This will better align the Component’s usage of U-series discrepancy codes with the 

expectations under DOD Supply Policy.

b. This will provide more accurate reporting and data collection of IUID-related

discrepancies using the WebSDR tool set.

c. The first column heading in Table C17.T1. SDR Decision Matrix: Discrepant IUID Data 

(IUID Indicator Y) is revised to read “Procurement Source” (rather than New Procurement) to be 

more inclusive (e.g., for receipt of reparables from contractor repair).

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages (tangible/intangible): This change provides improvement to the overall 

SDR system by reducing the occurrence of originators using incorrect discrepancy codes. It will 

enable more accurate reports to be generated regarding the actual number of SDRs that involve 

serially-managed items. It will accomplish these improvements with minimal impact to 

transaction processing and Component SDR systems. 

b. Disadvantages: None identified.

7. ADDITIONAL COMMENTS TO CONSIDER: The Components need to better align use

of IUID information with DOD Supply Policy. As DOD-wide implementation of IUID grows, 

there needs to be a higher level of confidence in reporting the numbers of actual IUID-related

discrepancies using the SDR tool set.

8. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Discrepancy code narrative 

names are effective July 1, 2014. The target date for system edits to enforce appropriate

discrepancy reporting based upon the FLIS IUID indicator is December 2015. Staggered 

implementation is authorized; Components may implement sooner to coincide with 

implementation of ADC 1030.

9. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: Not available.

Attachment, ADC 1095

Page 4
10. IMPACT:

a. New DLMS Data Elements: None.

b. Changes to DLMS Data Elements: Modification of text names associated with Useries of discrepancy codes as detailed in Enclosure 2. 

c. Automated Information Systems (AIS): Table updates are required for discrepancy 

code definitions in Component SDR applications. Integration with the MDC for identification of 

IUID requirements is required for Component SDR applications for development of systemic

editing for appropriate reporting procedures. 

d. DLA Transaction Services:

(1) Requires revision to DOD WebSDR to update code lists for SDR discrepancy code 

definitions displayed for SDR input and management report selection. (Implementation July 1, 

2014.)

(2) Requires the addition of new management summary report selection category

(within the discrepancy code drop box) for “All IUID Discrepancies” to include all U-series 

discrepancy codes minus Discrepancy Code U11. (Implementation by December 2014.)

(3) Requires interface with the MDC for identification of IUID required items to 

prompt users for inclusion of the IUID and/or serial number when reporting a shortage, overage, 

or wrong item receipt and the IUID Indicator is Y. A system edit for on-line input must be 

established to ensure that IUID discrepancy codes (U-series codes minus Discrepancy Code 

U11) are not be used for materiel that is not serially managed/tracked (IUID Indicator is N). 

(Implementation by December 2015.)

e. Non-DLA Logistics Management Standards Publications:

(1) May require update to internal Component guidance for processing of SDRs for 

serially-managed materiel based upon UII and/or serial number. 

(2) Specific training on IUID-related discrepancy reporting is required for SDR 

submitter and action activity personnel. 

Attachment, ADC 1095

Page 5
Enclosure 1

Revise DLM 4000.25, Volume 2, Chapter 17, Supply Discrepancy Reporting, as shown. 

Changes are identified by bold red italics.

“C17.3.8. Discrepancies in Item Unique Identification (IUID) Data 

C17.3.8.1. Report supply-related discrepancies involving IUID under DoD IUID 

Supply policy, including but not limited to Unique Item Tracking (UIT) programs, or as 

contractually required. Pending full transition to DoD IUID Supply policy using the unique item 

identifier (UII), SDRs identifying discrepancies in IUID data unique identification will be 

prepared citing both UII and/or corresponding serial number, when both are available. 

Applicability under DoD IUID Supply Policy is identified by NSNs with IUID Indicator Yes 

(Y). For missing or mismatched unique item identification of items that are DoD seriallymanaged/tracked, use the applicable U-series discrepancy code (see Table C17.T1.). Report 

missing or mismatched materiel identification unrelated to IUID (e.g. missing or mismatched 

part number or NSN) using the applicable packaging (labeling/marking), documentation,

technical data, or wrong item discrepancy code(s). Report quality-related deficiencies 

involving IUID, e.g., improperly constructed unique item identifier within the 2D data matrix, 

using Product Quality Deficiency Report (PQDR) procedures under DLA Regulation 4155.24, et 

al. 

C17.3.8.2. In order to facilitate reporting of discrepancies, particularly those 

involving discrepancies where inclusion of the IUID information is required/desirable, the SDR 

submission process should be integrated with the receiving process allowing receipt data to be 

captured once and reused. IUID discrepancies may be related to the packaging label, including 

automated information technology (AIT) readable content; the item marking, including AIT 

readable marks; supply documentation; the due-in record; and/or a mismatch between the item 

and any of these. When reporting an IUID mismatch (including shortage, overage, and incorrect 

item) the IUID content may be specifically identified as applicable to items received or not 

received using the IUID Received/Not Received Indicator. If no indicator is provided, the UII 

and/or serial number will be interpreted as applicable to the materiel received. Pending 

integrated capability to support IUID reporting in SDRs, remarks text may also be used to clarify 

the specific mismatched data. Additionally, attachment files may be uploaded/transmitted to 

DoD WebSDR to identify UIIs and/or serial numbers. 

C17.3.8.3. Discrepancies involving missing or mismatched IUID data unique 

identification identified during receipt of new procurement materiel (including direct vendor 

delivery (DVD)) must be reported prior to acceptance. Materiel may be placed in a suspended 

condition pending resolution. Discrepancies that result in incorrect information within the IUID 

registry at DLA Logistics Information Service must be reported by the receiving activity for 

corrective action. Pending development of procedures for direct routing of SDRs to DLA 

Logistics Information Service, send an email to the DLA Logistics Information Service IUID 

Help Desk (iuid.helpdesk@dla.mil). Missing IUID content in DLMS transactions will not be 

reported for stock shipments pending full transition to DoD IUID Supply Policy procedures 

except as applicable to UIT programs. 

Enclosure 1, ADC 1095

Page 1
C17.3.8.4. SDRs prepared for a mismatch with no discrepancy in quantity or stock 

number received should include the UII and/or serial number identifying the mismatch. That is, 

identify the UII and/or serial number for item(s) received that do not correspond to the shipment 

status, as well as the UII and/or serial number for the expected item(s) NOT received. Cite the 

IUID discrepancy code.

C17.3.8.5. SDRs prepared for a shortage of items identified by IUID Indicator Y 

should include the UII and/or serial number for the item(s) NOT received based upon 

comparison with the shipment status. Cite the applicable discrepancy code for the shortage and 

the IUID discrepancy code.

C17.3.8.6. SDRs prepared for an overage of items identified by IUID Indicator Y 

should include the UII and/or serial number for the extra item(s) received based upon 

comparison with the shipment status. Cite the applicable discrepancy code for the overage and 

the IUID discrepancy code.

C17.3.8.7. SDRs prepared for receipt of an incorrect item where the item received is 

identified by an NSN with a IUID Indicator Y should include the UII and/or serial number for 

the wrong item. Cite the applicable discrepancy code for the incorrect item receipt and the IUID 

discrepancy code.

C17.3.8.8. Table C17.T1 provides a decision matrix for when an SDR is required 

based on missing or mismatched IUID data during receipt processing. 

Table C17.T1. SDR Decision Matrix: Discrepant IUID Data (IUID Indicator Y)

New Procurement

Source

(IUID 

contractually 

required)

Approved 

UIT

Wrong Item 

Received 

w/IUID 

Indicator Y

Missing UII 

on item or 

packaging

Mismatch 

UII with 

shortage/ 

overage

Mismatch UII 

no shortage/ 

overage

Create 

SDR

SDR 

Action 

Code1

Y Y/N N N Y N Y 1A or 2A

Y Y/N N N N Y Y 1A

Y Y/N N Y N N Y 1A 

Y Y/N N N N Y Y 1A 

Y Y/N N Y N N Y 1A 

Y/N Y/N Y Y/N Y/N Y/N Y 1A or 2A

N N N N N Y Y 3B

N N N N Y N Y 1A or 2A

N N N Y N N N No SDR

N Y N N N Y Y 1A

N Y N N Y N Y 1A or 2A

N Y N Y N N Y 1A or 3B

1 SDR Action Codes are selected by the submitter based upon the desired response to the SDR. Codes identified in Table C17.T1 

are:

1A Disposition instructions for discrepant materiel requested; financial action not applicable.

2A Disposition of materiel and financial adjustment (credit) requested.

3B Discrepancy reported for corrective action and trend analysis; no reply required.”

Enclosure 1, ADC 1095

Page 2

 
Enclosure 2

Revise DLM 4000.25, Volume 2, Appendix 3, Supply Discrepancy Report Relevant Data 

Elements. Changes are identified by bold red italics.

DISCREPANCY CODES

Item Unique Identification (IUID) of Serially-Managed/Tracked Materiel and Unidentifiable

Materiel

U01 Unique identification data (UII/serial number) on label missing, damaged, or 

 unreadable. 

U02 Unique identification data (UII/serial number) on item missing, damaged, or 

 unreadable. 

U03 Unique identification data (UII/serial number) on supply documentation missing, 

 damaged, or unreadable. 

U04 Unique identification data (UII/serial number) not provided on shipping notice.

U05 Non-conformance to unique identification requirements under terms of contract

U06 Multiple containers without separate unique identification data (UII/serial 

 number) listings

U07 Mismatch between unique identification data (UII/serial number) on item and 

 label.

U08 Mismatch between unique identification data (UII/serial number) on item or 

 packaging marks/labels and the associated shipping documentation. 

U09 Mismatch between unique identification data (UII/serial number) on item or 

 packaging marks/labels and the associated due-in/shipping notice. 

U10 Mismatched or missing unique identification (UII/serial number) discovered 

upon opening a sealed pack. 

U11 Materiel unidentifiable; stock number missing or damaged

U12 Duplicate unique identification (applicable to UII only)

Enclosure 2, ADC 1095

Page 1